This Dirt Cheap Healthcare Stock Could Be a Hidden Artificial Intelligence (AI) Opportunity (Hint: It's Not Eli Lilly)
Popular healthcare stocks like Eli Lilly and Novo Nordisk have drawn attention for their blockbuster weight management drugs such as Mounjaro, Zepbound, Ozempic, and Wegovy. These treatments will likely generate billions in revenue, but these companies are not solely relying on them for growth. Both are exploring how artificial intelligence (AI) can improve their operations.
According to PwC, the total addressable market (TAM) for AI in healthcare could reach $868 billion by 2030. AI is already known for speeding up clinical trials and drug discovery, but there's another area in healthcare that AI could disrupt significantly: insurance.
Why UnitedHealth Group Could Be an AI Opportunity
UnitedHealth Group (NYSE: UNH) has faced a tough 2025. In April, the company lowered its earnings guidance, disappointing investors. The main reasons were higher-than-expected utilization rates in its Medicare Advantage program and reduced reimbursements in its pharmacy benefits management (PBM) segment, Optum Health. These factors compressed profit margins and pushed the stock down about 40% year-to-date, making it the worst-performing Dow Jones stock this year.
But the company's challenges are mostly about forecasting and cost management, not a broken business. This is where AI could make a difference.
How AI Can Improve UnitedHealth’s Business
- Better Utilization Forecasts: AI models trained on claims data and integrated with electronic health records (EHR) can predict utilization trends more accurately. This helps fine-tune pricing and prepare for cost spikes.
- Improved Risk Assessment: Machine learning can analyze detailed patient data to assess risk profiles more precisely, which could lead to better reimbursement forecasts in the Optum segment.
- Scenario Planning Using NLP: Natural language processing (NLP) can simulate how regulatory changes might impact the business. Companies like FiscalNote specialize in this technology, potentially helping UnitedHealth make smarter budgeting decisions during political shifts.
Is UnitedHealth Group Stock Worth Buying Now?
UnitedHealth shares currently trade near a five-year low and at a slight premium compared to other large insurers based on forward earnings. Management expects to course correct later this year and position the company better by 2026.
While AI integration is not guaranteed, it presents a practical way for UnitedHealth to improve forecasting, pricing, and risk management. For healthcare professionals considering investment or partnerships, this stock offers a low entry point with potential upside if AI-driven improvements materialize.
Patient investors with a long-term view may want to watch how UnitedHealth adopts AI technologies. The company’s future could look quite different if it successfully integrates machine learning and natural language processing into its operations.
For those interested in AI applications in healthcare and insurance, Complete AI Training offers courses that cover relevant tools and techniques.
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